5 Advices You Need Before Investing in Resort Homes in India
Real estate investments have long-piqued investors’ interest. For a long time real estate investments have been an obsession in the Indian sub-continent. It has become a matter of pride, status, and a safe way of generating income. A recent survey has shown people from the age group of 20-30 years are more inclined towards investing in real estate as a source of generating passive income.
Resort home villas have garnered interest from many folks recently in India. The reason being, resort homes are now seen as a potential source of passive income, as well as a property that can be utilised for small family vacations. However, a keen eye is needed to understand and make the right resort home investment, one that does not severely hit your pockets in the long run. Here are some points that can help to make an informed decision:
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Tourists Influx :
A sound resort home investment depends on the volume of tourists the area observes during the peak and non-peak season. As vacation period generally comprises of 12-15 weeks in a year, it is imperative to understand that the rent generated during this period suffixes the whole year.
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Existing Management :
A great deal of guests’ occupancy in a resort depends on the management. While purchasing a resort home it is important to check if the management is competent enough to cater well to the guests and handles the operations of the resort well. A failed management can severely impact your returns from the property.
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ROIs :
Before putting your money on a resort home, calculate how much ROI you will be generating through the resort and how long will it take to make your investment profitable. Though, the valuation and pricing of the resort may swing according to the market, a thorough understanding of the ROI helps in making an informed decision.
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Location and Amenities :
Resorts are vacation spots for tourists looking for a comfortable and luxurious stay. Before making an investment, make sure that the resort is located in a tourist destination let’s say Bhimashankar or Matheran and in a feasible location not too far off from the daily essentials. With this, it is also essential to check the amenities offered by the resort which are a deciding factor for the guests.
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Tax Benefits :
You may have purchased a lot of real estate properties and might think you have all the tax handling under control. With second homes, the entire process can be a lot more complicated with you ending up paying more income tax then required. While, resort home investments does offer a lot of tax benefits, it is always advisable to have a tax consultant on board to prevent from shelling out extra money.
The idea of owning a private villa in a resort can be exciting and overwhelming both at the same time, if the nitty-gritty of the investment is not understood well. So, a thorough research of the property and everything related to the property can help you tremendously in generating massive income in the long run.
